SB157
To Amend The Law Concerning Benefits Under The State Public Employee Retirement Systems.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
Senate Bill 157 authorizes various Arkansas public employee retirement systems to offer pension-owned life insurance as a survivor's benefit for their members. The affected systems include the Arkansas Public Employees' Retirement System, State Highway Employees' Retirement System, State Police Retirement System, Arkansas Teacher Retirement System, Arkansas Judicial Retirement System, and the Arkansas Local Police and Fire Retirement System. Participation in offering this benefit is discretionary, meaning no system is mandated to provide it. If a system chooses to offer the benefit, the life insurance payment to a member's beneficiary must be a set amount. Any remaining balance from the policy is intended to be used to reduce the respective retirement system's unfunded liabilities. Boards of trustees for each system are authorized to promulgate rules to implement these new provisions.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are the members of the various state retirement systems, who may be granted an additional life insurance benefit to pass on to their chosen survivors. The retirement systems themselves also benefit, as the legislation stipulates that any surplus funds from these life insurance policies are to be directed toward reducing the systems' unfunded liabilities, potentially improving the long-term financial health of the pension funds.
Who Might Suffer?
The bill could potentially negatively impact the financial stability or administrative resources of the individual retirement systems if the costs of managing and funding these new insurance programs exceed the benefits or the generated surpluses. Additionally, if the systems choose to implement these benefits, there could be long-term budget implications for the state or participating local governments if the insurance offerings become an unforeseen fiscal burden. Members might also be impacted if the implementation of these benefits results in lower returns or changes to existing retirement structures.
Vote Records
Third Reading
April 3, 2025View individual votes (35)
| Legislator | Party | Chamber | Vote |
|---|---|---|---|
| Jane English | Republican | Senate | Yea |
| Jonathan Dismang | Republican | Senate | Yea |
| Greg Leding | Democrat | Senate | Yea |
| Missy Irvin | Republican | Senate | Yea |
| Bryan King | Republican | Senate | Yea |
| Kim Hammer | Republican | Senate | Yea |
| Stephanie Flowers | Democrat | Senate | Absent |
| Frederick Love | Democrat | Senate | Yea |
| Terry Rice | Republican | Senate | Yea |
| Reginald Murdock | Democrat | Senate | Yea |
| Gary Stubblefield | Republican | Senate | Yea |
| Jim Dotson | Republican | Senate | Yea |
| John Payton | Republican | Senate | Yea |
| Alan Clark | Republican | Senate | Yea |
| Ronald Caldwell | Republican | Senate | Yea |
| Bart Hester | Republican | Senate | Yea |
| Jimmy Hickey | Republican | Senate | Yea |
| Dan Sullivan | Republican | Senate | Yea |
| David Wallace | Republican | Senate | Absent |
| Blake Johnson | Republican | Senate | Yea |
| Justin Boyd | Republican | Senate | Yea |
| Clarke Tucker | Democrat | Senate | Yea |
| Scott Flippo | Republican | Senate | Yea |
| Clint Penzo | Republican | Senate | Yea |
| Mark Johnson | Republican | Senate | Yea |
| Ricky Hill | Republican | Senate | Yea |
| Jamie Scott | Democrat | Senate | Yea |
| Breanne Davis | Republican | Senate | Yea |
| Ben Gilmore | Republican | Senate | Yea |
| Joshua Bryant | Republican | Senate | Yea |
| Matt McKee | Republican | Senate | Nay |
| Jim Petty | Republican | Senate | Yea |
| Steve Crowell | Republican | Senate | Yea |
| Tyler Dees | Republican | Senate | Yea |
| Matt Stone | Republican | Senate | Yea |
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